State Senate will issue its own set of healthcare reforms in response to Steward crisis

The state Senate will offer their own version of a healthcare reform bill this session, according to the upper chamber’s president, lengthening the already full to-do list facing lawmakers before then end of the legislative season.

Senate President Karen Spilka said her senate colleagues still need to review a healthcare reform bill passed through the state House last week, but will ultimately offer up their own bill for consideration.

“Sen. Cindy Friedman, the Senate Chair of Healthcare Finance, has been working hard on healthcare reform. We’ve talked about it since the beginning of the session, before Steward with all of their problems and concerns,” Spilka told WCVB in an interview aired Sunday.

The broadly-supported House legislation, according to Speaker Ron Mariano’s office, comes in part as response to the recent bankruptcy of Steward Health Care System, which operates eight hospitals in Massachusetts.

Steward’s dire financial circumstance has the state scrambling to prevent a disruption of services at those eight healthcare facilities all the while hoping none close and leave patients without a local hospital.

The House reform plan, according to Mariano, should hopefully prevent a similar problem in the future by expanding the powers of the Attorney General’s office to look into healthcare operators and their investors, improving the oversight powers of the state’s Health Policy Commission, and forcing companies to share their financial data with the state through enhanced penalties for noncompliance.

“This bill is the most significant health care market oversight and cost containment legislation in more than a decade, and is a continuation of the Commonwealth’s long-standing effort to ensure that everyone in Massachusetts has access to quality, affordable health care,” Mariano said in a statement.

Attorney General Andrea Campbell, whose staff is in the middle of representing the Bay State’s interests through Steward’s bankruptcy proceedings, said the House bill “addresses systemic vulnerabilities brought to light by the Steward Health Care crisis to help ensure that such a crisis does not happen again.”

According to Spilka, the state does “need to reform” the healthcare system, considering the last change came about more than a decade ago.

“It’s time to take a look at it,” she said.

The senate’s bill will likely contain much of what is found in the House bill, Spilka said without being specific and without having reviewed the lower chamber’s offering.

“We’ll have our own version and then we’ll hash out the differences,” she said.

Spilka said she would not support any taxpayer funded bailout of Steward, which according to its attorneys is facing $9 billion in outstanding debt obligations. Steward’s eight Massachusetts hospitals will go up for sale at auction at the end of June.

“They should not get a penny for their gross misconduct,” she said. “The senate is concerned mostly about patient safety, continuity of care, and the jobs. So we need to look at that and see what we can do to support it.”

The involvement of private equity in the state’s healthcare system, the Senate President said, is a “big problem.”

Any healthcare reform bill the Senate does produce will need to find its way to the clerk’s office soon, as the Legislature’s two-year schedule of formal sessions is set for closure on July 31.

After that, absent the full unanimous support among the state’s lawmakers, it will be very hard for any bill to make it onto the floor for consideration.

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